Ladbrokes, Britain’s second largest bookmaker and owner of 2,100 gambling operations across the UK, recently announced that it has newly established a five-year £540 million debt facility after coming to an agreement with its banks. The maturity date of the new debt facility will be in 2016 and replaces the existing £560 million debt facility, which matures in 2013. Based on Ladbrokes estimations, in 2012 the new joint interest will increase to 7.5%.
That said, since the new debt facility is £540 million, this makes it £20 million less than Ladbrokes existing financial facilities. Nevertheless, the company is certain that its new facility will still give them sufficient finances even after its £131 million bond is returned in July 2012. In addition, the bookmaker has another bond of £225 million that will mature in 2017.
According to Ladbrokes chief financial officer, the company’s new arrangements and its proven track record for being able to generate strong cash shows that Ladbrokes remains standing on solid ground.